The balance sheet identity refers to the fact that A.) Current Assets and Current Liabilities must be equal to each other. B.) Shareholders equity in the current year must equal shareholders equity in prior year plus net income from the current year that is not being paid out as dividends or used to repurchase stock. C.) Assets must equal Liabilities plus Shareholders' Equity. D.) Net Property Plant and Equipment must equal Gross Property Plant and Equipment minus Accumulated Depreciation. E.) Shareholders equity can never be negative.
The balance sheet identity refers to the fact that A.) Current Assets and Current Liabilities must be equal to each other. B.) Shareholders equity in the current year must equal shareholders equity in prior year plus net income from the current year that is not being paid out as dividends or used to repurchase stock. C.) Assets must equal Liabilities plus Shareholders' Equity. D.) Net Property Plant and Equipment must equal Gross Property Plant and Equipment minus Accumulated Depreciation. E.) Shareholders equity can never be negative.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The balance sheet identity refers to the fact that A.) Current Assets and Current Liabilities must be equal to each other. B.) Shareholders equity in the current year must equal shareholders equity in prior year plus net income from the current year that is not being paid out as dividends or used to repurchase stock. C.) Assets must equal Liabilities plus Shareholders' Equity. D.) Net Property Plant and Equipment must equal Gross Property Plant and Equipment minus Accumulated Depreciation . E.) Shareholders equity can never be negative.
Transcribed Image Text:The balance sheet identity refers to the fact that
A.) Current Assets and Current Liabilities must
be equal to each other.
B.) Shareholders equity in the current year must
equal shareholders equity in prior year plus net
income from the current year that is not being
paid out as dividends or used to repurchase
stock.
C.) Assets must equal Liabilities plus
Shareholders' Equity.
D.) Net Property Plant and Equipment must
equal Gross Property Plant and Equipment
minus Accumulated Depreciation.
E.) Shareholders equity can never be negative.
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